All dollar amounts are in U.S. dollars unless
otherwise indicated.
TORONTO, Sept. 22, 2017 /CNW/ - LSC Lithium Corporation
("LSC" or together with its subsidiaries, the
"Company") (TSXV:LSC) is pleased to announce that, further
to its news release dated June 5,
2017, the Company has exercised its option (the
"Option") to acquire the Stella Marys Project located in the
Salar de Salinas Grandes, in Salta province, Argentina. Closing of the acquisition is
expected to take place on or about November
2, 2017.
STELLA MARYS HIGHLIGHTS
- LSC will become the single largest tenement holder in the Salar
de Salinas Grandes Basin.
- Land package will increase by 1,472 hectares to over 86,000
hectares.
- Adjacent tenements show high values of lithium exceeding 3,000
mg/L on Cangrejillos and Cangrejillos I and 2,000 mg/L on Sofia
III.1
- High lithium values in excess of 800 mg/L reported by Orocobre
Ltd. on immediately adjacent tenements, from surface sampling and
shallow well.2
EXLORATION UPDATE HIGHLIGHTS
- LSC is rapidly progressing its exploration and targeting
delivery of NI 43-101 reports on its Salar de Pozuelos, Salar de
Rio Grande and Salar de Salinas Grandes tenements in the Salta
Province by the end of 2017.
- Increased operational capacity with the addition of several key
staff to the exploration team.
Ian Stalker, President and CEO of
LSC, commented: "The acquisition of the Stella Marys Project
will further consolidate and expand LSC's land position in Salinas
Grandes and we are positioned to be the sole operator in the Salar.
I believe Salinas Grandes holds significant development
potential and we are actively working with the local communities
and provincial governments on both the Salta and Jujuy sides of the
salar to secure support for our activities and realize the full
potential of Salinas Grandes."
The Stella Marys Property is strategically located immediately
adjacent to tenements previously owned by Orocobre and acquired by
LSC (see LSC Press Release dated March 29,
2017 for details) and immediately south and east of LSC's
tenements Sofia III, Cangrejillos and Cangrejillos I. LSC
understands that a previous operator completed a comprehensive
exploration program of mapping, sampling, geochemistry, drilling
and pump tests and preliminary engineering on the property. The
Company anticipates confirming this work and other technical
reports as part of its planned exploration program for all of its
Salar de Salinas Grandes tenements, with the objective to confirm
the historical data developed by ADY Argentina, Orocobre and
others, and complete an initial NI 43-101 report on LSC's Salar de
Salinas Grandes tenements in Salta Province by the end of 2017.
With the closing of the acquisition of Stella Marys, LSC will
become the single largest tenement holder in the Salar de Salinas
Grandes basin, both in Salta and Jujuy Provinces, with over 86,000
ha under control, either directly or in joint-venture with Dajin
Resources, as illustrated in Figure 1 below.
Terms of the Acquisition
LSC acquired the Option from Advantage Lithium Corp.
("Advantage") pursuant to an agreement dated March 28, 2017 (the "LSC-Advantage
Agreement"). The Option is governed by an agreement with
Minera Santa Rita SRL ("MSR") dated October 27, 2016 (The "MSR Option
Agreement") and the LSC-Advantage Agreement. The consideration
payable by LSC at closing will be satisfied by:
(a)
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making a cash payment
of $650,000 to the owner of Stella Marys, MSR;
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(b)
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issuing to Advantage
a number of LSC common shares (calculated on the basis of the
proportionate closing prices of the LSC common shares and Advantage
common shares on the trading day preceding the date of closing), as
reimbursement for the issuance by Advantage of 900,000 Advantage
common shares to MSR at closing in accordance with the MSR Option
Agreement and paying up to $48,000 in finder's fees payable by
Advantage; and
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(c)
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entering into a
royalty agreement with Advantage with respect to a 2% royalty on
the brine concentrate produced from the Stella Marys
Project.
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The LSC common shares to be issued to Advantage will be subject
to a 4-month hold period.
Update on Exploration Program & Exploration Team
LSC is pleased to announce that, further to its news release
dated September 6, 2017, it is
rapidly progressing its exploration program with a strong focus on
developing NI 43-101 reports on its Salar de Pozuelos, Salar de Rio
Grande and Salar de Salinas Grandes tenements in the Salta Province
by the end of 2017, subject to receipt of permits for work on Salar
de Salinas Grandes.
LSC is committed to accelerating its exploration program and is
expanding its exploration team on the ground in Argentina. Several senior geologists and
hydrogeologists have joined the LSC team in Argentina and are being supported by an
expanded team of junior geologists and technicians. LSC has also
secured office and storage facilities in San Antonio de los Cobres, Salta to support
its exploration programs.
Exploration highlights include:
Salar de Pozuelos - Drilling is anticipated to be completed by
the end of September, with final brine assay and the relative Brine
Release Capacity (RBRC) sample results expected by mid-October. An
initial NI 43-101 resource estimate is expected by the end of
2017.
Salar de Pastos Grandes - Hole PG-03 has now passed 200 m. Two
additional holes are scheduled for completion by the end of
November 2017. Results from brine
packer tests and RBRC tests will be released as they become
available.
Salar de Rio Grande - Geophysical exploration and twin hole
drill programs are scheduled to start at the end of September, with
an initial NI 43-101 resource estimate expected by the end of
2017.
Salar de Jama – As noted in the LSC press release of
September 6, 2017, LSC is highly
encouraged by the results of the initial geophysical work with
respect to basin depth and potential for highly conductive brine
horizons. Additional geophysical work involving 3D seismic and
CS-AMT/TEM studies is scheduled to commence mid-October, followed
by a program of shallow drilling in December
2017.
Qualified Person/Data Verification
The scientific and technical information included in this press
release is based upon information prepared and approved
by Donald H. Hains, P.Geo. Mr. Hains is a qualified person, as
defined in NI 43-101 and is independent of LSC and
Advantage.
ABOUT LSC LITHIUM CORPORATION:
LSC Lithium has amassed a large portfolio of prospective lithium
rich salars and is focused on developing its tenements located in
five salars: Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes,
and Jama. All LSC tenements are located in the "Lithium Triangle,"
an area at the intersection of Argentina, Bolivia, and Chile where the world's most abundant lithium
brine deposits are found. LSC Lithium has a land package portfolio
totaling approximately 300,000 hectares, which represents extensive
lithium prospective salar holdings in Argentina.
Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information. These statements relate to future
events or future performance, including statements as to the
completion of the acquisition of the Stella Marys Project and the
timing thereof, the Company's expectations regarding the extent of
its aggregate land position in Salinas Grandes and its development
potential, ability of LSC to confirm prior historical exploration
work conducted on Salinas Grandes, ability and anticipated timing
to complete a NI 43-101 report on the Salar de Pozuelos, Salar de
Rio Grande and on LSC's Salar de Salinas Grandes tenements in the
Salta Province, timing of completing drilling at Salar de Pozuelos,
ability to complete the planned drill holes at Salar de Pastos
Grandes, ability to complete the two hole drill programs at Salar
de Rio Grande and additional geophysical work at Salar de Jama and
the timing thereof. The use of any of the words "could",
"anticipate", "intend", "expect", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on LSC's current belief
or assumptions as to the outcome and timing of such future events.
Whether actual results and developments will conform with LSC's
expectations is subject to a number of risks and uncertainties
including factors underlying management's assumptions, such as
risks related to: title of the Stella Marys tenements and their
ability to be transferred at closing; title, permitting and
regulatory risks; exploration and the establishment of any
resources or reserves on the Stella Marys tenements or other LSC
properties; volatility in lithium prices and the market for
lithium; exchange rate fluctuations; volatility in LSC's share
price; the requirement for significant additional funds for
development that may not be available; changes in national and
local government legislation, including permitting and licensing
regimes and taxation policies and the enforcement thereof;
regulatory, political or economic developments in Argentina or elsewhere; litigation; title,
permit or license disputes related to interests on any of the
properties in which the Company holds an interest; excessive cost
escalation as well as development, permitting, infrastructure,
operating or technical difficulties on any of the Company's
properties; risks and hazards associated with the business of
development and mining on any of the Company's properties. Actual
future results may differ materially. The forward-looking
information contained in this release is made as of the date hereof
and LSC is not obligated to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein. For more
information, see the Company's filing statement on SEDAR at
www.sedar.com.
Neither the TSX Venture Exchange Inc. nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The TSX Venture Exchange Inc. has neither approved nor
disapproved the contents of this press release.
_______________________________
1
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See technical report
titled "Review of Four Lithium Exploration Properties in Argentina"
prepared for LSC Lithium Inc. and dated January 27, 2017 with an
effective date of December 31, 2016 filed on LSC's SEDAR
profile.
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2
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See technical report
titled "Technical Report on Salinas Grandes Lithium Project" dated
April 16, 2012, amended August 12, 2013 prepared for Orocobre Ltd
filed on Orocobre's SEDAR profile.
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SOURCE LSC Lithium Corporation